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Hickory Company manufactures two products13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct
Hickory Company manufactures two products13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor- hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: (The total estimated overhead cost may not agree with the sum of allocated overhead costs to each product.) Activity Cost Pool Machining Activity Measure Machine-hours Estimated Overhead Cost Expected Activity $238,800 12,000 MHs Machine setups Production design Number of setups $ 93,100 190 setups 83.000 Number of products $ 2 products 373.500 Direct labor-hours $ 15.000 DLHS General factory Activity Measure Product Product Y Z 6,900 5,100 150 Machining Number of setups 40 arch O 48 hp Machine setups Number of setups $93.100 190 setups 83,000 Production design Number of products $ 2 products 373,500 General factory Direct labor-hours $ 15,000 DLHs Activity Measure Product Product Y Z 6,900 5,100 150 1 1 7,900 7,100 Machining Number of setups Number of products Direct labor-hours 40 Required: Using the ABC system, how much total manufacturing overhead cost would be to Product Y? (Round your intermediate calculations to 2 decimal places and answer to the nearest dollar amount.) Total manufacturing overhead cost $ 55 DR
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